Morning Gold Fix – October 26, 2010

FMX | Connect – www.fmxconnect.com - (Reported 10/26/2010)

The following is a summary of yesterday’s US gold activity and a recap of Asia & European markets overnight. It includes our proprietary options analytics and news stories from industry professionals.

 
Summary

December Gold settled at $1338.90 per 100 troy ounces on Monday, a net gain of $13.80 for the day.

December gold was down $8.5 to $1330.4 per 100 troy ounces as of 8:30 AM EST this morning. The December U.S. dollar index was up $0.422 to $77.725. January platinum was down $0.1 to $1696.90 per 50 troy ounces. December silver was down $0.289 cents cents to $23.255.

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Bloomberg (Reported 10/26/2010)

“Gold may decline in London as some investors sell the metal after a two-day rally and as a pause in the dollar’s slump curbs demand for an alternative asset.

The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, gained after yesterday dropping as much as 1 percent. The dollar was little changed versus the euro as a Federal Reserve official reiterated that a second round of economic stimulus was required. Gold, which usually moves inversely to the dollar, reached a record $1,387.35 an ounce on Oct. 14.” Gold May Fall After Two-Day Gain on Investor Sales, Pause in Dollar's Drop.

Reuters (Reported 10/26/2010)

“Gold edged lower in Europe on Tuesday as the dollar firmed a touch, but held near $1,340 an ounce as investors awaited clues from U.S. data due this week on the prospect of further monetary easing in the United States.

The Federal Reserve will discuss at a meeting in Washington next week whether to extend its quantitative easing policy to accelerate growth. This could have significant implications for the dollar and inflation, and consequently gold.”  Gold edges lower as dollar firms, eyes Fed meet.

NS Futures (Reported 10/26/2010)

“With weaker price action seen in a host of physical commodity markets this morning, periodically positive trade in the Dollar and minor weakness in many global equity markets, the overall environment for gold this morning seems to initially favor the bear camp.  Some gold traders might be put off by so much talk of the deflation threat facing the US, while others think that the prospect of aggressive QE2 from the US Fed has temporarily become a stale theme.

While equity markets in Asia and Europe are generally weaker this morning.  US stock indices are moderately lower during the early Tuesday trade.”  Daily Metals Commentary. 

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